1. Field of the Invention
The present invention in its disclosed embodiments is related generally to the customer relationship management (CRM) process, and more particularly to a novel system, method, and computer program product for customer contact management that includes a balanced service process for accurately measuring and maximizing first call or contact resolution (FCR) and customer satisfaction (CSAT).
2. Statement of the Prior Art
Keeping customer service costs low while keeping customer satisfaction high is especially difficult in a struggling economy. Many companies respond by cutting staff in order to meet short-term financial targets. When the economy improves, they then ramp back up in an attempt to regain lost customers and boost the loyalty of the customers who remain.
While this approach can certainly reduce costs, it also reduces customer satisfaction and loyalty. A better way to approach the issue is to put more focus on taking care of the customer's issue during the first contact. Improving first call or contact resolution (FCR) not only impacts the cost of operations, but simultaneously affects customer satisfaction and retention. By improving FCR and reducing the total volume of repeat calls, companies can significantly lower service time and the overall cost to serve the customer. From a customer's perspective, improved FCR translates directly to higher satisfaction which further impacts the bottom line by boosting customer loyalty and revenues. As a matter of fact, having the issue resolved on the first contact has been cited in many studies as being the number one driver of customer satisfaction. It should be noted at this juncture that FCR as used herein can refer to first call resolution or first contact resolution, because a contact within the embodiments of the present invention may refer to any one or more of the following: voice calls, SMS messages, email, chat, or social media communications from customers.
For example, according to the Yankee Group, 30% to 35% of calls coming into the average contact center are repeat customer calls that require expensive “rework” by contact center agents. What can this mean to a company?
Assume, for example, that the average cost-per-call is about $5-$10 for a basic consumer customer service inquiry and $20-$45 for a Level 1 technical support issue. This amount can be multiplied by the number of the company's repeat calls. If that is not known, it can also be assumed that it is about 30-35% of the company's total calls. Then, the operational savings can be calculated by assuming an improved resolution rate.
As an example, if the contact center gets 100,000 calls per month, and the cost-per-call is $10, while 30% of calls are repeat calls, the cost of the repeat calls is $300,000 per month. A mere 10% reduction would yield a savings of $30,000 per month or $360,000 per year. Make the cost of a call $25, and the annual savings would be $900,000.
Benchmarking studies done by MetricNet, LLC of McLean, Va. USA indicate that first contact resolution is the single biggest driver of customer satisfaction. If a company wants loyal customers, the company needs to have customer satisfaction ranking in the 90s. These studies across all industries show that in order to have satisfaction rates this high, first contact resolution rates must match. Studies done by Customer Relationship Metrics of Sterling, Va. USA reveal caller satisfaction ratings will be 5-10% lower when a second call is made for the same issue.
Moreover, if companies have a complex situation where FCR is not realistic, just reducing the time to resolution can make a big difference. Industry Week, for example, reported on a large automotive manufacturer trying to increase market share in a new market by establishing a strong brand name and a superior customer service reputation. They wanted to deliver high quality service coupled with quick resolution of customer issues. One of their biggest challenges in achieving their goal of superior customer service was the time dedicated to warranty claims resolution. Once the issue was addressed, claims resolution time went from 174 days to 52 days. Warranty costs were reduced by 34% and customer satisfaction sky rocketed.
The pursuit of increasing FCR rates is the idealistic goal of any organization reliant upon contact center support. However, mountains of data, armies of analysts and management's ever changing reaction to FCR crises often leave both customer management staff and company leadership apathetic and unable to serve the customer. This leaves customers frustrated and often drives them away. At the core of the problem is an insufficient or nonexistent set of tools to confront the challenge and the lack of a detailed process dedicated to rectifying the situation, as a result: (a) confusing and ever changing processes are implemented; (b) staff morale is unfavorably impacted, decreasing tenure and increasing attrition; and (c) customers are lost.